Which of the Following Statements Is True Regarding Effective Concessions

question 44

Multiple Choice

Which of the following statements is true regarding effective concessions?

• A) The party who made the opening offer should avoid making any concessions to its offer.
• B) To maximize their slice of pie, the negotiators should make larger and more frequent concessions.
• C) Negotiators should offer only a single concession at a time and avoid frequent concessions.
• D) Negotiators should make consistently greater concessions than the counterparty.

---

Definitions:

Demand Deposits

Bank accounts that allow the holder to withdraw funds without advance notice, such as checking accounts.

Required Reserves

The minimum amount of funds that a bank must hold in reserve against specified deposit liabilities, as dictated by the central bank's regulations.

Primary Reserves

Liquid assets held by financial institutions to meet regulatory requirements and immediate liquidity needs.

Secondary Reserves

Assets that are easily convertible into cash but are not held in the form of cash itself, serving as a backup for primary reserves in financial institutions.